by Brianna Crandall — March 30, 2011—Global real estate investment and advisory firm Jones Lang LaSalle has released its “Top 11 Trends for 2011” that are shaping the United Arab Emirates real estate in the coming year and beyond.
Craig Plumb, Head of Research, Jones Lang LaSalle MENA, said, “The UAE is a continuously evolving and maturing real estate market. It is increasingly reverting to its core strengths such as services, trade, tourism, transport and logistics. In terms of capital values and rental trends, we continue to observe the unfolding of two tier markets across different sectors. Good quality product remains attractive particularly in the logistics and residential markets. With continued commitment to developing infrastructure, the UAE will remain attractive to investors around the region.”
The key predictions are:
- Property/asset management is #1 risk for real estate
- Lower supply projections than anticipated to help smooth out cycle
- Rental market directions—Dubai and Abu Dhabi
- Selective stability in residential market
- Increased office leasing activity
- From super regional malls to community centers
- From return on ego to return on equity
- Light industrial/logistics offer low risk and stable yields
- Transaction levels to remain subdued in 2011
- From competition to coordination in UAE
- Infrastructure is key driver for real estate recovery
For more specifics on each point above, see Jones Lang LaSalle’s “Top 11 Trends for 2011.”
